Download ECON 2020-500 Principles of Macroeconomics

Principles of Macroeconomics
Econ 2020 Section 500
Spring 2007 Syllabus
Instructor: Jason Pearcy
Economics Building
Room 12
Phone: (303) 492-4784
E-mail: [email protected]
Time & Location: T and Th 2:00-3:15 in HLMS 199
Course Page: http://www.colorado.edu/Economics/courses/pearcy/teaching
Office Hours: Tuesday 5:00-6:00
Thursday 5:00-6:00
and by appointment
Required Texts: • Krugman, Paul and Robin Wells, (2006), Macroeconomics,
Worth.
• Cunningham, Rosemary and Elizabeth Sawyer Kelly, (2006),
Study Guide to Accompany Krugman/Wells Macroeconomics,
Worth.
Course Description:
Macroeconomics is the big picture of the economy. Macroeconomics studies the economy
as a whole, whereas microeconomics is about how individuals and firms make decisions.
Since the economy affects us all, possibly in different ways, its important for everyone to
know about macroeconomics.
In the first part of the course, we’ll look at very basic parts of the macro economy:
national income and its components. In the next part of the course, we’ll look at long run
macroeconomics and in particular, long run macroeconomic growth. The third part of the
course will cover short run macroeconomics. After we characterize the macroeconomy in the
short run, we’ll discuss the implications of fiscal and monetary policy in the short and long
run. The next part of the course will focus on labor markets and inflation. Following this
will be a brief historical overview of macroeconomics. Time permitting, the last part of the
course will present models of open-economy macroeconomics.
My goal is to make this course both challenging and intellectually stimulating. To help
me achieve this goal and for you to get the most out of this course, there are certain things
I expect for you to do throughout the semester. First off, you should read the book. I feel
the book is a good introductory macroeconomics text, it supplements the material presented
in lecture well and the book generally follows the course outline. Besides reading the book,
you should work on problems. I’ll sometimes give you problems in lecture, you should go
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over problems in recitation, there are problems in the book, there are problems in the study
guide (if you purchased it), and there are problems online. The more problems you do, the
more you will understand the material, the better you will do in the class, and the more
you will get out of the class. I want everyone to do well in the class, but how well you do
is up to you. You’ll have to work hard, read the book, do lots of problems, but if you are
having issues with the material, myself and the recitation instructors are here to help. So, be
sure to ask questions in recitation and come see us during office hours if you have additional
questions about the material.
Prerequisites:
This is an introductory macroeconomics course. No previous knowledge of macroeconomics is assumed. However, students are expected to be familiar with introductory microeconomics, algebra (solve for x), geometry (find the area of a triangle) and know how to solve
simultaneous equations both algebraically and graphically.
Lectures:
In lecture, new material will be presented. Occasionally you’ll be asked to work on
practice problems that will be covered during that lecture or in the next lecture.
All students are strongly encouraged to attend lecture regularly. Besides all the obvious
reasons to attend lecture, some exam questions will not be covered in the text but only
covered in lecture. In the off chance that you miss a lecture, you should try to get lecture
notes from a fellow student, if they are willing to share. I don’t give students my notes as
these are for teaching and are not likely to help.
Recitation:
Recitations start the second week of classes. What happens in recitation is up to your
recitation instructor. Your recitation instructor will give you a recitation syllabus that will
describe how recitation will work. Generally no new material is presented in recitation, and
this is your time to ask any additional questions and review. Attending recitation is required
and expected.
Grading:
Your course grade will be based on two midterms, your recitation grade and a comprehensive final. Exam dates are listed below. The breakdown of grades is as follows: 30% for
Midterm 1, 30% for Midterm 2, 30% for Recitation and 40% for the Final. To make this add
up to 100%, I’ll automatically drop the lowest of your Recitation, Midterm 1 or Midterm 2
scores when determining your grade. You will not be able to drop your Final Exam score.
There will be no extra credit opportunities available, but I will use a curve. If the median
on the final or either of the midterms is below a 75%, I will add the same amount of raw
points to everyone’s score until the median is 75%. If the median is above 75%, then either
everyone really understands the material or I have written too easy of an exam. In either
case, students should not be punished for this, so I will not curve scores downwards. There
will be a separate curve for each of the midterms and the final. Your scores with the curve
will be used in determining which score to drop.
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Your recitation score will be determined by your recitation instructor according to the
recitation syllabus. The same curving scheme described above will generally be applied to
your recitation score to determine your final course grade. However, I reserve the right to
equate the recitation scores from different recitation instructors. This may involve curving
your recitation score up or down. In any case, additional curving of recitation scores will be
done for fairness so that no one is either unfairly hurt or helped by the grading of different
recitation instructors.
Exams:
The two midterm exams will take place during regular class time in the regular class
room on the dates listed below. The final will take place during finals week on the date,
time, and place listed below. All exams will be graded by scantron, so be sure to remember
a #2 pencil. You’ll probably also want to bring a calculator (Cell phone calculators are not
permitted. They make lousy calculators that take up too much time to use.). The number of
questions on each exam may vary, but the final will have more questions than the midterm.
The format of all questions will be multiple choice. Exam questions will be based on material
covered in the book and/or in lecture. A minority of the questions will test your memory
and understanding of the definitions and concepts covered, and a majority of the questions
will test your ability to synthesize the material and apply the concepts in a new context. I’ll
talk more about each exam as the exam date approaches.
Make-ups for any exam are allowed only under compelling circumstances. Under such
a compelling circumstance, you are always required to make prior arrangements before the
exam, usually one week in advance. In the case that you miss a midterm exam that you
cannot make-up, remember that the lowest midterm or recitation grade is dropped. So
missing a midterm exam should be avoided, but it may or may not hurt you as long as you
do well on the other midterm exam and in recitation. In the event that a make-up exam is
warranted, I may choose to prorate your exam grade.
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Important Dates:
Drop/Add Dates
Classes Start
Recitations Start
Midterm 1
Midterm 2
Spring Break
Last Day of Class
Final
Tues. Jan. 16
Mon. Jan. 22
Tues. Feb. 13
Thurs. Mar. 22
Mon. Mar. 26 - Fri. Mar. 30
Thurs. May 3
Sat. May 5 10:30-1:00 p.m. in HLMS 199
Additional Notes:
If you qualify for accommodations because of a disability, please submit to me a letter
from Disability Services (DS) early in the semester so that your needs may be addressed.
DS determines accommodations based on documented disabilities. Contact: 303-492-8671,
Willard 322, http://www.colorado.edu/disabilityservices).
Disability Services letters for students with disabilities indicate legally mandated reasonable accommodations. Other letters/requests you may receive from agencies such as the
Wardenburg Student Health Center, or other health providers, such as physicians or counselors, are recommendations I may choose to follow to assist students but are not necessarily
legal mandates.
Campus policy regarding religious observances requires that faculty make every effort
to reasonably and fairly deal with all students who, because of religious obligations, have
conflicts with scheduled exams, assignments or required attendance. In this class, accommodations will be made, but only with adequate advanced notification. Students can see full
details at http://www.colorado.edu/policies/fac_relig.html.
Students and faculty each have responsibility for maintaining an appropriate learning environment. Students who fail to adhere to behavioral standards may be subject
to discipline. Faculty have the professional responsibility to treat students with understanding, dignity and respect, to guide classroom discussion and to set reasonable limits
on the manner in which students express opinions. See polices at http://www.colorado.
edu/policies/classbehavior.html and at http://www.colorado.edu/studentaffairs/
judicialaffairs/code.html#student_code.
All students of the University of Colorado at Boulder are responsible for knowing and
adhering to the academic integrity policy of this institution. Violations of this policy may
include: cheating, plagiarism, aid of academic dishonesty, fabrication, lying, bribery, and
threatening behavior. All incidents of academic misconduct shall be reported to the Honor
Code Council ([email protected]; 303-725-2273). Students who are found to be in violation
of the academic integrity policy will be subject to both academic sanctions from the faculty
member and non-academic sanctions (including but not limited to university probation,
suspension, or expulsion). Other information on the Honor Code can be found at http://
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www.colorado.edu/policies/honor.html and at http://www.colorado.edu/academics/
honorcode/.
The University of Colorado Policy on Sexual Harassment applies to all students, staff
and faculty. Sexual harassment is unwelcome sexual attention. It can involve intimidation, threats, coercion, or promises or create an environment that is hostile or offensive.
Harassment may occur between members of the same or opposite gender and between any
combination of members in the campus community: students, faculty, staff, and administrators. Harassment can occur anywhere on campus, including the classroom, the workplace, or
a residence hall. Any student, staff or faculty member who believes s/he has been sexually
harassed should contact the Office of Sexual Harassment (OSH) at 303-492-2127 or the Office
of Judicial Affairs at 303-492-5550. Information about the OSH and the campus resources
available to assist individuals who believe they have been sexually harassed can be obtained
at: http://www.colorado.edu/sexualharassment/.
Be aware of the Drop/Add deadlines (http://registrar.colorado.edu/). I’ll only add
students to the course after the wait list deadline.
If you have three or more final exams scheduled on the same day, you are entitled to
arrange an alternative exam time for the last exam or exams scheduled on that day. To
qualify for rescheduling final exam times, you must provide evidence that you have three or
more exams on the same day, and arrangements must be made with your instructor no later
than the end of the sixth week of the semester. For the complete final examination policy,
see the University of Colorado at Boulder Catalog (http://www.colorado.edu/catalog).
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Tentative Course Outline:
Week 1
Introduction: Microeconomics Review
Basic Macro Ideas: Business Cycles, Unemployment, Long Run Growth, Inflation, Open Economy
Chapters 1-6
Week 2
National Income: Gross Domestic Product,
Measures of GDP, GDP Deflator
Chapter 7
Week 3
Price Indexes: Consumer Price Index, Baskets,
Measurement Issues, Inflation, Interest Rates
Long Run Growth: Economic Growth, Economic Productivity
Chapters 7 & 8
Week 4
Financial Systems: Savings, Investment, Loanable Funds Market, Financial Intermediaries
Chapter 9
Week 5
Midterm 1 - Tuesday Feb. 13
Chapters 1-9
Week 6
Aggregate Demand and Supply: Aggregate
Supply, Aggregate Demand, AS-AD Model
Income and Expenditure: Consumption Function, Investment, I-E Model
Chapters 10 & 11
Week 7
Fiscal Policy: Taxes, Multiplier, Long Run Fiscal Policy
Chapter 12
Week 8
Monetary System: Role of Money, Role of
Banks, Money Multiplier, Money Supply, Federal
Reserve
Chapter 13
Week 9
Monetary Policy: Demand for Money, Interest
Rates, Prices in the Long Run
Chapter 14
Week 10
Midterm 2 - Thurs. March 22
Chapters 10-14
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Week 11
Spring Break
Week 12
Labor Markets: Unemployment, Business Cycles, Phillips Curve
Chapter 15
Week 13
Inflation: Money, Inflationary Effects
Chapter 16
Week 14
Historical Overview: Classical Economics, Keynesian Economics, Monetarism, Modern Thoughts
International Trade: Comparative Advantage,
Imports and Exports
Chapter 17 & 18
Week 15
Open Economy Macro: Balance of Payments,
Exchange Rates
Chapter 19
Week 16
Final Exam - Sat. May 5 10:30-1:00 p.m. in
HLMS 199
Chapters 1-19
Last Updated January 19, 2007
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